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UK consumers have a voracious appetite for digital video content, but the cost-of-living crisis is boosting ad-supported options, particularly broadcaster video-on-demand services. 狈别迟蹿濒颈虫鈥檚 pivot to an ad tier, meanwhile, may have legs.

With Apple TV+, ad-supported streaming becomes the norm: Apple鈥檚 service is one of the last to hop on the AVOD trend, but its ad ambitions go much further.

On connected TV (CTV) and OTT platforms, these include audience size, ad loads, impressions, content quality, inventory scarcity, and pent-up demand. More broadly, CPMs are affected by macroeconomic conditions and the general health of the ad market. YouTube is an outlier among streaming services.

Ad-supported CTV platform audiences are growing, but most still don鈥檛 offer the same scale as network TV. Proponents of TV advertising point to scale as why they鈥檙e coming back, but eventually, this dynamic will change as streaming services continue to grow鈥攁nd as YouTube continues to muscle into the CTV space. Major streaming services like Netflix and Disney+ only just introduced ad tiers.

Our annual Trends to Watch report for Canada highlights expected developments in the country鈥檚 media and advertising market for 2025. Next year, we anticipate a shift in media buying will favor domestic publishers and retail media channels, while large platforms will contend with the new Digital Services Tax.

Nearly a third of the US population will be free ad-supported streaming TV (FAST) viewers by 2027, accounting for a total of 114.5 million viewers, according to our September 2023 forecast. That large audience base, coupled with the rise of new players and the abundance of ad inventory, is making FASTs increasingly appealing to media planners鈥攅specially those on a budget.

Research company Antenna noted that November was the first month they observed the majority of signups for premium SVOD services going to ad-supported plans versus ad-free ones. So the majority of signups going to ad-supported versus ad-free.

Netflix Faces an Uphill Battle With Its Ad-Supported Tier. Subscribers aren鈥檛 interested in trading down. In November 2022, Netflix debuted its cheaper, ad-supported streaming tier in 12 key growth markets; Mexico and Brazil were among them.

We project over half of the US population will be watching content from at least one ad-supported streaming service monthly by 2026, up from 41.8% in 2022.

YouTube is the most widely used free video service among US internet users of all generations, according to Kagan. Its highest saturation is among Gen Zers (82%) and millennials (78%).

Streaming services and their vendors should optimize the user experience (UX) for ad-supported viewers. This deck aims to help streaming platforms approach marketers鈥攁nd tech vendors approach publishers鈥攚ith data-rich slides, compelling marketing assets, and insights that highlight the CTV advertising opportunity. Specifically, this deck will:. Size the CTV advertising market.

鈥淲hen you have multiple properties and your end goal is to move [people] in between them, or eventually move someone from a free ad-supported version to a paid subscription, it becomes a little more complicated if people don鈥檛 understand they鈥檙e connected,鈥� said our analyst Jeremy Goldman.

Ad-supported streaming isn鈥檛 a turn-off for consumers, which is good news for streaming services struggling to attract subscribers. Half of 狈别迟蹿濒颈虫鈥檚 new subscriptions came from its ad-supported tier, propelling it past 70 million ad-supported users. AVOD options also continue to make gains, giving firms like Roku a leg up. For advertisers, streaming saturation means cheap access to consumers.

I would suggest that we scrap them all together and we just refer to them entirely as ASS, ad supported streaming, whether it's free or paid. Because the advertiser and the user doesn't really care about those distinctions as much as long as they know if they're getting ads or not. It's all ASS, ad supported streaming. Jeremy Goldman:. You know what?

We're going to start with news of Disney's ad supported tier coming to Canada and Europe. Earlier this month, Disney announced that following successful rollout in the US, its ad supported tier will be made available in select markets across Europe and in Canada from November the 1st this year.

础尘补锄辞苍鈥檚 OTT ad revenues are a small but increasingly important part of the story. Ad revenues from Twitch, Freevee, Prime Video, and the Fire TV platform will total $4.72 billion this year, up 84.4% from 2023.

Viewership continues to shift away from linear TV to OTT sources like Netflix, YouTube, Amazon Prime Video, Roku, AppleTV+, Disney+, and Crave (owned by Bell Media). Many of these services offer ad-supported tiers for less expensive viewing. There will be 22.0 million adult CTV viewers in Canada this year, due to greater penetration of smart TVs. CTV is eating into traditional TV ad spending.

Discovery could be among those fielding offers as the two companies toy with the idea of their own free, ad-supported services. Why did Fox say no? With offers at nearly four times what Fox paid for Tubi, agreeing to a deal would net a tidy profit for Fox and spare it from having to manage a streaming service. But Fox clearly sees more opportunity in sticking with Tubi.

Most subscription streaming services offer ad-free and ad-supported plans. After Amazon Prime Video introduced its ad plan in January, Apple TV+ became the biggest advertising holdout among streamers. Advertising holdouts have gradually accepted commercial breaks in their programming.

Even as we approach a potential ad spend winter, connected TV (CTV) advertising is in decent shape. Netflix and Disney+ just joined the ad-supported streaming game. Cord-cutters are outpacing pay TV viewers. And YouTube is increasingly watched on CTVs. These five charts offer a closer look at CTV鈥檚 past, present, and future.

56% of US adults think ad breaks on free-ad supported streaming TV (FAST) services should be under 30 seconds, according to an August 2023 ViewNexa survey.

The majority (65%) of US consumers say that two or three ad breaks per 1 hour of free ad-supported streaming TV (FAST) are acceptable, according to a ViewNexa survey.

Time spent with connected TV (CTV) by US adults will be within 1 hour of linear next year, at 2 hours and 3 minutes (2:03) and 2:48 per day, respectively, according to our June forecast. CTV usage is outpacing ad spend on most platforms, but spend is growing rapidly as Netflix, Disney+, Max, and Amazon Prime Video push more viewers toward ad-supported tiers. As the CTV ad floodgates open, advertisers need to make sure they鈥檙e maximizing ad value by thinking of CTV differently, experts suggested at last week鈥檚 Advertising Week New York.

狈别迟蹿濒颈虫鈥檚 ad-supported tier has been a success and will cross the $1 billion mark for US ad revenues next year, per our forecast. CTV advertisers know that their ad dollars are going to waste, so any way streamers like Netflix can streamline their ad delivery will be appealing to buyers. 3. Advance buying will outlive linear.